Chapter 2--Understanding Buyer Behavior Flashcards
What are the two types of customers, and how are they different?
- Consumers purchase products for their own use 2. Business buyers purchase products to resell for profit or reuse to create another product
What are the types of consumer decisions?
- Extended problem solving
- Routine response behavior
- Limited problem solving
How do consumers make extended problem solving buying decisions? Why might they use this method?
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
This logical, time-consuming system is used when the purchase is high-stakes
During the consumer buying decision making process, what are the two stages of the Information Search?
- Internal search (i.e.: what do I already know, through experience and previous exposure?) 2. External search (i.e.: what might I learn with some effort? Not always done when the stakes for the purchase decision are low)
What is a consideration set?
The products a consumer considers as alternatives when going through Evaluation of Alternatives. Products can be excluded from this due to feeling, lake of awareness, or poor experience
What is cognitive dissonance in consumer marketing? How can marketers minimize it? What benefit is there to minimizing cognitive dissonance?
The uncertain feeling after a purchase decision of whether the decision made was right By following up with the customer after purchase to reinforce the rightness of the purchase, often using phone calls or mailings. It makes it more likely the consumer will like the product and purchase it again at a future date.
What is a routine response buying decision? When is it made?
How can marketers reinforce routine responses?
A purchase made routinely, out of habit, due to a consumer preference.
By assuring the product is available every time it is desired, so there is little chance of a competitor being tried instead (i.e.: make sure every time the consumer wants your product, there is one near at hand to buy).
What is a limited problem solving buying decision? When is it used?
Some of the consumer purchasing process is made from loyalty, but some is made through problem solving (e.g.: price comparisons)
Often performed on small purchases, so it is important that marketers develop products that are competative to consumer desires.
What are the influences on consumer decision making?
Internal and external influences, including things like:
- A reference group
- Values
- Family Influences
- Age
- Life Cycle Stage
- Lifestyle
- Perception
What is the purpose behind Buisiness Buying decisions?
To carry out business functions
What are the factors that influence business buying?
Many factors may influence business buying, including:
- Committee process
- Managerial input
- Budgets
- Size of the purchase
- Conflicting needs and goals
- A buying department
- Demands of other buisiness activities
What are the steps of the business buying decision process?
- Problem recognition
- Product specifications
- Search for and evaluation of suppliers (critical for a supplying company to get on the preferred supplier list)
- Product and supplier selection
- Evaluation of product and supplier performance
What types of buisiness buyers are there?
- Producers
- Resellers
- Governments
- Institutions
What are the three types of business buying decisions, and how do they differ?
- New task buy: first time purchasing a good or service, with no preferred suppliers list, existing specifications, etc. The entire Business Buyers Decision Process is oftern worked through, which takes time
- Modified re-buy: re-buying a product, but with different product specifications due to a chance in circumstances (which may include dissatisfaction with the supplier)
- Straight re-buy: re-buying products routinely; often performed automatically in inventory management. Suppliers must assure the process is a seamless one, so it never occurs to the company to review the re-buy.
What are the influences on business buying decisions?
- Influencers: anyone who influences the decision, but inside and outside the business
- Purchasers: the person who signs off on the purchase (may be antagonistic to the others in the process, if his job is primarily to follow the budget)
- Decider: the person with budgetary responsibility for the purchase (though this may be delegated). Is the highest-level manager involved in the process
- Users: the purchase who will use the product, though this does not mean this person will have considerable input in the purchase decision
- Gatekeeper: the person who controlls access to information, and the decision maker. May be hard to identify, but crucial that this person is on board
